- US Dollar felt heat against the Swiss Franc, as the latter one continued to gain traction.
- There was a minor bullish trend line break noted on the hourly chart of the USDCHF pair, which was broken recently to call for more declines.
- Swiss Consumer Price Index, issued by the Swiss Federal Statistical Office posted a decrease of 0.4% in Jan 2016, just as the market expected.
- In terms of the yearly change, there was a decline of 1.3%, as per the forecast.
The US dollar suffered a lot of losses against the Swiss Franc lately, and it looks like it may continue to head down in the near term. There was a minor bullish trend line break noted on the hourly chart of the USDCHF pair, which was broken by sellers to take the pair further down.
If the pair corrects higher from the current levels, then the broken trend line may act as a resistance along with the 23.6% Fib retracement level of the last leg from the 0.9819 high to 0.9661 low.
On the downside, a break below the 0.9660 support could take the pair towards 0.9640, followed by 0.9620.
Today, the Swiss Consumer Price Index, which measures the average price change for all goods and services purchased by households for consumption purposes was issued by the Swiss Federal Statistical Office. The market was expecting a decline of 0.4% in the CPI in Jan 2016, compared with the preceding month. The outcome matched the forecast, as the CPI declined 0.4%.
In terms of the yearly change, the Swiss Consumer Price Index decreased 1.3%, which was again in line with the forecast.
The Swiss Franc looks like getting a lot of bids against most major currencies, including the US Dollar. So, we can anticipate more losses in the USDCHF pair in the near term.